Can I efile 1065 with a K-1 Line J profit percent override?

Tom8 — Sat, 01 Jun 2019 20:36:38 GMT

I have a 1065 Partnership return with 3 partners and one partner died. Thus I have four K-1’s. The K-1 worksheet information is correct. However the profit/loss percents on the worksheets are not correctly transferred to the K-1s line J. TurboTax prepares four K-1’s each showing a 33% Beginning AND Ending interest. Partner 1 Beginning should be 33% and ending zero. Partner 2 Beginning should be zero and ending should be 33%. If I override the K-1 percents to correct this can I still efile the 1065 return?

Don't override the Line J amounts. This is a constant qu...

Rick19744 — Sat, 01 Jun 2019 20:36:39 GMT

Don't override the Line J amounts. This is a constant question since what appears on that line does not seem to be correct, however, it typically is correct.

See the attached snippet from the instructions to the K-1:

Generally, the amounts reported in item J are based on the partnership agreement. If your interest commenced after the beginning of the partnership's tax year, the partnership will have entered, in the Beginning column, the percentages that existed for you immediately after admission. If your interest terminated before the end of the partnership's tax year, the partnership will have entered, in the Ending column, the percentages that existed immediately before termination.

As long as the allocation is correct, don't stress about the cosmetics of Line J on the K-1.

topic Can I efile 1065 with a K-1 Line J profit percent override? in Business & farm

Can I efile 1065 with a K-1 Line J profit percent override?

Don't override the Line J amounts. This is a constant qu...